3 April 2024

In his Spring Budget last month, the Chancellor alluded to a number of ISA reforms. Whilst some items will remain in consultation stage for some time, there are other immediate changes to ISAs that will affect younger ISA holders in particular.

Changes from 6 April 2024

  • From 6 April 2024, the age for opening Cash ISAs will increase from 16 to 18 years old and over. There will be an interim measures in place for those aged 16-17.
  • From 6 April 2024 it will not be possible for under 18s to subscribe to more than one cash ISA. 

What does this mean for 16 & 17 year olds?

If, on 6 April 2024, an individual is 16 or 17 and:

  • Does not have an existing cash ISA They will be eligible to apply for, and subscribe to, a single cash ISA in any tax year until their 18th birthday.
  • Has an existing cash ISA They may continue to subscribe to it or transfer it to another cash ISA after 6 April 2024.
  • Has a cash ISA on fixed rate/ terms and it ends Maturing funds may be transferred to a new cash ISA.

The above transitional arrangements end at midnight on 5 April 2026. After this point, only those aged 18 years or older will be able to open and hold a cash ISA.

The above is relevant to Darlington Building Society ISA holders. If you have any questions please contact our friendly team.
You can review the wider industry list of ISA reforms here.